A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to "a-" from "bbb+" of Spartan Insurance Co. (Spartan) (Pearland, TX). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Spartan's balance sheet strength, which A.M. Best categorizes as very strong, as well as its very strong operating performance, very limited business profile and appropriate enterprise risk management.
The rating actions reflect a continuation of very strong operating performance, which continues to aid in strengthening of Spartan's risk-adjusted capitalization. These positive rating factors are driven by Spartan's niche focus as a direct writer of non-owner private passenger auto liability business, which has resulted in consistent underwriting and operating profits since conception of the product offering. Spartan outperforms the composite significantly as reflected by five-year average pre-tax and total returns on revenue and equity that are well-above composite averages. The company's favorable returns and minimal liabilities have led to improved underwriting leverage ratios and risk-adjusted capitalization measures.
A.M. Best Upgrades Credit Ratings of Spartan Insurance Company
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